Carmel Monterey California

There are a lot of week long and weekend events in August and hotel prices will be high. Look at the little hotels in Pacific Grove too. That's where we almost always stay. Many are within walking distance of the most beautiful beaches and marine life on the coast. The small scattered hotels near Lighthouse Road aren't fancy but it's all about the location and price for me.

EDIT: We just came back from an overnight trip this week. Took the granddaughters to the WONDERFUL aquarium, our 6th visit although it was only the girls 2nd visit. I found our hotel from the extensive list on the MBAquarium site. They offer 2 day for the price of one aquarium tickets which we used. We spent 3 hours there the first day we arrived and 6 hours on the second day. They want to go back!

Pacific Grove is nice. But Monterey downtown has a bit more life. The closer to the beach or the Monterey wharf the more you will pay. Carmel is generally more expensive. If you like wine check Carmel Valley too, not too far from Carmel.
Do some checking on TripAdvisor and Booking.com. There are huge differences in price between weekends and weekdays, but there are properties of all types and prices.

We stayed at the Carmel Country Inn right in Carmel and it was wonderful!!

We stayed at the Lighthouse Lodge in Pacific Grove. It was quite a few years ago so can't vouch for current quality but still gets pretty good ratings and reviews. It was a few minutes walk from the Point Pinos Lighthouse and about a 10 minute drive from the Monterey Bay Aquarium and Monterey town, even walking distance if ambitious. It had lovely grounds - we woke up in the morning to deer wandering the grounds and munching on the flowers (which I'm sure wasn't appreciated). I agree that weekend rates in summer can be a bear in that area. But definitely check TA and booking.com if your budget is fairly low.

Yvonne, as a local I drive by many hotels and inns everyday, and almost never visit any of them. Hotels, motels, inns, etc. from Marina down through Carmel and Carmel Valley, a great variety. I would search Booking.com or similar service thoroughly, reading reviews, and assessing location and features that are important to you. Are you visiting for tourism, golf, hiking, beach strolling, or what? Each might indicate a different location.

Mid-to-late August is "Car Week" on the Monterey Peninsula, culminating with the Concours d'Elegance on Sunday, August 20. That is a very congested time, lots of slow traffic, with generally high lodging prices.

I strongly prefer Pacific Grove to Monterey or Carmel, and I would guess you'll find a better selection of "mid" range hotels and B & B's there. Carmel is expensive, and Monterey just seems a little beat anymore. Paciific Grove retains its small town feel, is quieter, and is right next door to Monterey. If you are not familiar with the history of the area and have not read Cannery Row by Steinbeck before, I recommend it, in fact I just finished re-reading it.

There's a very good restaurant in PG, Pepper's Mexicali Cafe:

http://www.peppersmexicalicafe.com/

Unfortunately, nice and inexpensive usually don't go together in Carmel.
We stayed at the Best Western. Price not bad for Carmel. It was basic and clean, but it had a free breakfast and adequate parking. Staff was friendly. You can get more free coffee in the front office.
Location is good. You can easily walk to Ocean Ave and to the beach.
Down the street is a very good restaurant, Basil.
I suggest avoiding Carmel Bakery on Ocean Ave. It is very crowded and the pastry was just OK. But there is a bathroom, in case...

Patisseri Boissiere on Mission between Ocean and 7th is a more relaxing and quieter place to have your coffee and pastry after walking about town. They have table service. Carmel Bakery is self-serve.
IMHO, Dametra Café on Ocean is overrated. It's good for families where taste is not as important as something for the kids at a decent price.